Samsung expects smartphone demand to ‘soften’ in 2016, the manufacturer revealed has revealed at its Q1 financial results.
It joins bitter rival Apple in predicting a tough quarter in terms of sales and has warned investors to expect single-digit percentage growth over the course of 2016 for smartphones. This week Apple predicted that iPhone sales would slow for the first time ever.
Samsung said that it would respond the ‘softening demand and intensifying competition’ by increasing product shipments and releasing new devices.
In a statement on the results the brand said: ‘As for the outlook for 2016, Samsung expects single-digit percentage growth in both the smartphone and tablet categories amid softening demand and intensifying competition. Despite this challenging environment, the company will focus on increasing smartphone shipments and maintaining a double digit margin through releases of competitive devices and an optimized product portfolio.’
It’s been widely anticipated that Samsung are set to launch a number of new handsets in this quarter of the year. This is expected to include a new flagship device in the Galaxy range. The manufacturer said that it planned to grow in the high end of the market through greater product differentiation.
In a statement the brand said that it also expected the wearable category to expand its contribution and for services to continue to develop:
‘Specifically, in the premium smartphone segment Samsung aims to reinforce its market leadership and drive growth with differentiated and innovative products. For the mass market segment, the company will focus on increasing shipments and profitability through competitive product line-ups.
‘Meanwhile, tablets and wearable devices are expected to expand their contributions to overall business performance while new services such as Samsung Pay will continue to be developed.’